More Women Struggle with Financial Literacy
Low literacy rates dramatically impact the lives of women, demanding they work harder, take more time to pay debts and, sometimes settle for earning less.
The U.S. Department of Education reports that 3.8 million American adult women possess literacy skills below a “basic” level. The basic level refers to reading, writing and math skills at a third-grade level. This lack of education makes it difficult to understand bank statements, credit card agreements and other financial documents.
An American College of Financial Services literacy study of men and women between 60 and 75 found:
- Thirty-five percent of men passed a quiz on retirement income literacy
- Eighteen percent of women passed the same test
Those who passed were more likely to have a retirement plan, as well as a plan to cover the costs of long-term care.
Women lacking competency in financial literacy face serious repercussions, such as taking on large amounts of credit card debt, defaulting on student loans, and experiencing difficulty managing income, taxes and investments.